Lifetime homeowners with mortgages satisfied knowing that there is a high demand in the future

23/01/2007

In 2006 1.2 billion amounts of lifetime mortgages were sold, data approved by Safe Home Income Plans (SHIP). Towards the end of 2007 analysts feel that figures will rise to 1.7 billion pounds.

Jon King – Ship’s Chief Executive feels the equity release market has become much better over the past 10 years, however most people are in two minds and feel unsure.

Jon King feels equity release has become more open and affordable and soon as it receives complete regulation around 2007, Mr. King feels it will be safer. The business has come from hard inflexible also lower value products from many years ago.

Five years ago an average cost of a lifetime mortgage was 8.5%. Today the figure has decreased to 6%; this is all because of competition.

These products have increased popularity, Jon King is in doubt that ship has a dedicated role to take part in ensuring consumers are in good hands.

“Reassurance of the security of all products provided by Ship members must be made apparent and more confidence needs to be instilled amongst the IFA {Independent Financial Adviser} community. Said Mr. King.

“Access to appropriate, expert advice as well as great value products.” He feels people can see the demand for this product and it’s all down to large firms to supply consumers with this.